Google Nest software unit merging with OhmConnect
Energy management startup OhmConnect is combining with a Google Nest division to form a new company.
Driving the news: OhmConnect investor Sidewalk Infrastructure Partners (SIP) said the startup has struck a deal with Google's Nest Renew service to merge the entities and form a new company called Renew Home.
Details: Renew Home will combine OhmConnect's home energy management platform with Google Nest's energy products and services for its thermostats that help customers prioritize cheaper and cleaner energy.
- This combined entity will power the Nest Renew service going forward, SIP said in a press release.
- Financial terms of the transaction and other details of the merger were not disclosed.
Catch up fast: The demand response software at the core of this deal lets a utility remotely dial back a customer's smart thermostat, EV charger or other device. That frees up capacity on the grid, and customers get compensated for opting in.
- Virtual power plants build on this idea: startups like OhmConnect bundle together all the capacity they can get from a bunch of smart thermostats, battery systems and other devices — then sell it to a utility, which would otherwise have to pay a gas power plant to fire up.
Of note: SIP said it will invest $100 million in the new company and that it plans to sign contracts with utilities to provide capacity from the company's virtual power plant networks.
- The closing of the agreement is subject to regulatory approvals and other customary closing conditions, SIP said.
Between the lines: Sidewalk is a spinout of Google's parent company, Alphabet.